PARIS (AP) — France’s president and prime minister managed establish a new government Just in time for the holidays. Now comes the difficult part.
get rid of debtAfter an already turbulent 2024, President Emmanuel Macron and Prime Minister François Bayrou have a lot on their plate: increased pressure from the nationalist far right, wars in Europe and the Middle East:
What is France’s finances like?
The most urgent task is passing the 2025 budget. Financial markets, rating agencies and the European Commission are urging France to reduce its budget deficit, comply with EU rules on debt limits and prevent France’s borrowing costs from rising. If you do that threatens the stability and prosperity of all countries We share the euro currency.
France’s debt is currently estimated at a staggering 112% of gross domestic product. Governments provided aid to businesses and workers during the COVID-19 lockdown, even as the pandemic curbed growth and capped household energy prices after Russia’s invasion of Ukraine. , the price rose further. Your bill is due soon.
But in France The previous government collapsed This month, Marine Le Pen’s far-right party and left-wing MPs opposed 60 billion euros in spending cuts and tax increases in the original 2025 budget. Mr Baillou and new Finance Minister Eric Lombard are expected to scale back some of those commitments, but the math is tough.
“The political situation is tough, the international situation is dangerous and the economic situation is fragile,” Lombard, a low-profile banker who advised Socialist governments in the 1990s, said upon taking office.
“Environmental emergencies, social emergencies, business development, these myriad challenges require us to treat endemic deficits,” he said. “The more we go into debt, the higher the cost of debt becomes, and the more we choke the country.”
How long will this government last?
This is France’s fourth government in the past year. No party has a majority in parliament, and the new cabinet cannot survive without the support of centre-right and centre-left MPs.
Macron’s fiercest rival, Le Pen, joined leftist forces in a no-confidence vote that helped oust the previous government. Le Pen remains a powerful force, with Bairou consulting her when forming a new government.
This has angered left-wing groups, which had hoped for more influence in the new cabinet, who say the promised spending cuts will hit working-class families and small businesses the hardest. Meanwhile, left-wing voters have felt betrayed since the summer’s snap election, in which the left-wing coalition won the most seats but failed to win power.
The possibility of a new no-confidence vote looms, but it is not clear how many parties will support it.
What about Mr. Macron?
President Macron has repeatedly said he will remain president Until the end of his term in 2027.
But France’s constitution and current structure, enacted in 1958 and known as the Fifth Republic, were designed to ensure stability after a period of turmoil. If this new government collapses within months and the country descends into political paralysis, pressure will mount on Mr Macron to resign and call early elections.
The National Rally, dominated by Le Pen, is keen to bring down Macron. But Le Pen faces troubles of her own: A court ruling in March over allegations of illegal political party funding could cost her her life. They are prohibited from running for public office.
What else is on the agenda?
The National Rally and far-right Interior Minister Bruno Letailot are calling for tighter immigration controls. But Bayrou wants to focus on making existing rules work. “There are a lot of (immigration) laws. Nothing is being applied,” he told broadcaster BFM-TV on Monday, responding to criticism from conservatives.
Military spending has become a key issue amid concerns about European security and pressure from President-elect Donald Trump for Europe to spend more on its own defense. French Defense Minister Sébastien Lecornu is a supporter Military aid to Ukraine He stressed the need to maintain jobs and fight against “accumulating threats” to France in a statement on Tuesday that included expanding arms production.
More immediately, President Macron wants to enact emergency legislation in early January that would allow for faster recovery. French island of Mayotte devastated by cyclone It is located in the Indian Ocean off the coast of Africa. Thousands of people have taken refuge in emergency shelters, and authorities are still counting the death toll more than a week after the disaster.
Meanwhile, the government in the restive French South Pacific territory of New Caledonia collapsed on Tuesday with a wave of resignations from pro-independence supporters. This is another challenge for new Foreign Minister Manuel Valls and the incoming cabinet.
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Associated Press writer David McHugh in Frankfurt contributed.
